Macro expert Hugh Hendry has sounded the alarm on the state of the US banking system, saying that capital flight away from it is justified.

In an interview on Bloomberg Markets, Hendry warned that if the M2 money supply, which tracks liquid checking accounts, continues to decline, the US government could intervene and prevent citizens from withdrawing their money from the banking system.

Hendry also dismissed the idea that a blanket guarantee on deposits would solve the problem and recommended US Treasuries and Bitcoin as safe havens for investors.

He believes that Bitcoin has the potential to become an asset class that could trade three or four times higher in the next five years, making it an attractive investment opportunity.

The warning from Hendry highlights the increasing concerns about the state of the US banking system and the potential impact on investors.